Product Group Report:
Machine tools
A report on the remanufacture of manual and
CNC tooling machinery in the UK.
Written by: Phill Butler
Date: 2006 (reissued June 2009)
www.remanufacturing.org.uk
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Contents
1
Overview
5
2
The product
6
3
Evolution rate
6
4
Value
7
5
Potential
8
6
Policy options
9
7
Model
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1 Overview
Machine tools are an essential element of modern production facilities. They are
employed in a wide range of industries, adding value directly or indirectly to
products. Investment in machine tools requires confidence in the capital goods
market, thus the global machine tool market is highly dependant on global
economic and political trends. The downturn in global trade after 2001 saw the
machine tool market decline sharply and, despite the massive growth of
manufacturing seen in China and India, the sector is only just beginning to
recover. The continued migration of production operations to lower wage
economies, coupled with the greater productivity of single machines, has reduced
the home market for machine tools in the UK. Since 2000, the UK stock of
machine tools has steadily decreased by 6% per annum (Benchmark Report,
2006).
Over half the turnover from UK machine tool producers is due to export, although
the UK also imports a similar value of equipment. The UK is believed to be the
12th largest producer of machine tools in the world, with the 15th largest market
(Gardner Publications Inc). It has historically been a strong exporter of high
quality machine tools. Although budget Asian alternatives have made inroads into
the cheaper end of the market, European, Japanese, and American products are
still seen as superior in terms of quality. Developing markets in China and India
have been slow to take advantage of the more expensive European machines,
although the UK is now beginning to see more exports to Asia. There is also a
strong export demand for used machinery that is no longer required in the UK.
In terms of production, there are few large UK owned machine tool manufacturers
remaining, with a number of foreign companies such as Yamazaki Mazak and
Hardinge (Bridgeport) operating manufacturing facilities in the UK. Whilst most
large OEMs offer a comprehensive support and parts service, very few offer full
refurbishment or remanufacture. Smaller OEMs on the other hand are far more
likely to offer some form of remanufacture or reengineering. These firms usually
produce a limited range of products, aimed at a particular manufacturing
operation, and will work on machines from other manufacturers as well as their
own.
With the many OEMs ignoring the demand for second hand and reconditioned
machines, a number of third party operators have emerged, offering repair and
remanufacture. Some of these firms specialise in particular components such as
CNC monitors or spindles, whilst others remanufacture entire machines. Some of
these organisations form alliances with well known OEMs such as Jones and
Shipman, who manufacture grinding machines. With OEM parts commanding a
high price, this is an attractive option for users of machine tools; large and small
alike. There is also a thriving market for retro fitting of CNC systems to aging
machines to boost their productivity to a level comparable to modern units. There
has been a shift in the aerospace industry over the last 3 – 4 years towards
opting to purchase re-engineered and remanufactured equipment rather than
new, and this has boosted the UK remanufacturing industry significantly in some
areas.
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Due to the extensive skill and knowledge base that the UK possesses in the
machine tool sector, older British machines are regularly shipped back to the UK
from developing economies for remanufacture. These machines will then be
returned to their owner in “as new” condition, but at far less cost than a new unit.
Some firms also offer an on-site remanufacturing service. This practice is
particular popular for large lathes, mills and vertical borers. Smaller machines are
normally replaced with cheaper imports from Asia and the Middle East.
2 The product
The overwhelming majority of machine tools are used to work metal, although
they can of course be used on other materials. The Manufacturing Technologies
Association, which represents the machine tool sector in the UK, defines a
machine tool as: “a power driven machine, not portable by hand when in
operation, which works material by cutting, forming, physiochemical (or noncontact) machining, or a combination of these techniques”. Modern machine tools
often incorporate a complex computer control system, known as CNC (computer
numerical control).
Vibrations are a source of error when machining and so must be avoided at all
costs. To counter this, machine tools often have substantial cast iron structures to
absorb vibration and provide stiffness to prevent the machine flexing under load.
Modern machines may also have real-time feedback control systems that alter
the tool path to take into account machine movement, vibration or tool wear. For
extremely accurate operations, a temperature controlled environment may also
be required. Operator safety is of course a paramount consideration, and all
machines must be fitted with appropriate guards and safety cut-off devices.
These must be retro-fitted to older machines to comply with current regulations,
and owners who fail to do so may face prosecution.
By the nature of their working environment, machine tools must be extremely
rugged and reliable, as downtime is expensive. Many machines run 24hrs a day
for years on end, needing very little manual intervention.
3 Evolution rate
The products created using machine tools are becoming ever more complex and
demanding, and so today’s machine tools are becoming more accurate and
reliable than ever before. New materials and computer modelling techniques are
helping to optimise machine structure, whilst increased computer processing
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power and networked communication is allowing for improved monitoring and
feedback systems on CNC units. The introduction of high speed machining
techniques allows for lower tool forces to be applied to the work piece, thus
reducing machine and work piece distortion. There is also a move to reduce or
eliminate the need for coolant, historically both bad for the environment and a
non-value adding expense (up to 15% of total cost).
In the drive for improved productivity, so called lights-out (unmanned) machining
operations are becoming more popular, with machines being able to perform a
multitude of tasks without human intervention. This has seen the introduction of 6
and 7 axis machines that rely on advanced feedback control rather than a
traditional heavy-weight chassis for stability.
For many applications however, this new technology is simply not required. The
ability to retro-fit CNC technology to twenty or thirty year old machines means that
for all but the most high tech, demanding operations, quality used machinery can
still compete, particularly in lower wage economies where there is not such an
emphasis on removing manual labour from the production process.
In terms of energy efficiency, the deciding factor for machine tools is the electric
motors that are used to provide the motive force. As more efficient motor
technology emerges, older tools can be adapted to accept these newer designs.
A new generation of permanent magnet rotor devices are beginning to be
developed which offer improved efficiency and reduced size. Although these have
not been incorporated into current machines, it is likely that machines in the future
will all employ this technology. Linear motors are becoming widely used in higher
end applications because of the improved accuracy and repeatability they offer.
The rate and method by which coolant is applied will also affect the efficiency of
an operation to a lesser extent, and again, this system can be upgraded on older
machines as technology moves forward.
4 Value
Machine tools represent a significant capital investment for companies. Some
modern CNC machine centres can cost hundreds of thousands of pounds to
purchase and install. Older tools therefore retain a residual value as a second
hand or remanufactured item; they are attractive to companies who wish to
reduce their required capital outlay. Large firms may also wish to buy used
equipment for lower volume or backup production. Further more, lead-time on a
remanufactured machine may be substantially less than a new one; some
manufacturers have a delay of 12 months or more for production of some
bespoke models.
The heavy iron castings used in machine tool chassis and beds retains a
significant value, even if all other components of the machine are replaced. They
also represent a substantial amount of embodied energy. Some industry sources
believe that 20 year old cutting beds are superior to modern items as the designs
were more substantial and the quality of cast iron better. These castings are
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extremely robust and repair is simple; they can easily facilitate several cycles of
reuse. Modern castings are generally lighter to reduce cost, and rely more on
lower tool forces and intelligent control feedback to maintain accuracy.
Due to the rapid advancement of CNC technology, it is unlikely that a
remanufactured machine tool would retain its original control unit. Although many
tools do not require the very latest in CNC, it is likely that the controller would be
replaced with a more up to date system. The CRT display unit could be retained if
still working, although a remanufactured unit may be fitted to reduce the risk of
warranty claims. There are companies who specialise in the remanufacture and
repair of machine tool display units, so even damaged units may hold some
residual value. OEM replacements are expensive, and may not be available for
older models.
To ensure remanufactured machines can produce the required accuracy, any
wearing components such as bearings, channels and spindles should be either
replaced or remanufactured. Channels and spindles may be re-coated with
materials such as Turcite® before grinding to their original tolerances, and so
retain some of their value. Bearings will usually be replaced with new.
Motors and cooling pumps represent the most significant energy consumers on
machine tools and as such should be replaced with newer, more efficient items.
As with all other components discarded during the remanufacturing process,
these will retain a value as scrap and should be recycled in a responsible
manner.
5 Potential
The UK has a strong remanufacturing industry base, with extensive skill and
knowledge of the sector. However, owing mainly to the migration of industry to
lower wage economies and the introduction of cheaper alternative products into
the UK market, demand for machine remanufacture is falling. Niche sectors such
as aerospace and steel are remaining healthy, with specialised re-engineering
firms taking advantage of the current market stability. General engineering and
automotive are on the decline however, which is having a negative impact on the
internal UK machine tool industry as a whole. This is not to say that the market is
beyond hope. Far from it; despite the highly publicised failures of car companies
such as MG Rover, the automotive sector still accounts for around 40% of
machine tool sales in the UK (MTA, 2006). Heavy industry is still a large
consumer of new and remanufactured machines.
Machines of value below £25,000 are no longer economical to remanufacture
when compared to cheap alternatives from the Far East. Re-engineering of
larger, high value machines is more popular than ever, but many are destined for
overseas customers; there is a net flow of large machines out of the UK. The
industry will find it increasingly difficult to acquire cores, with many firms are
already experiencing a rising price for used machines, and sourcing cores from
abroad as non are available in the UK. Well reputed, specialised firms can
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continue to operate in this environment as their expertise in the field justifies the
extra cost of UK labour and transporting cores from overseas. Smaller firms
however, who existed mainly to serve the UK market will find it increasingly
difficult to compete. Offering remanufacture is no longer adequate to compete in
the global market. Firms must display a capability to re-engineer machines, i.e.
give them capability above that for which they were originally designed.
Remanufacture can be carried out anywhere in the world, whereas the skill and
knowledge required to design and fabricate a new machine or add CNC, based
around an existing core, takes time to develop. This is what UK firms must aim to
capitalise on in order to compete with firms operating closer to the eastern
marketplace, with lower costs. Manufacturing is a global force, and firms who
choose to target only one marketplace will find themselves at a distinct
disadvantage.
As machine tools become more complex, and firms demand more performance
from their tools at low cost, there will be an increasing market for re-engineered
machine tools of excellent quality. The global demand for machine tools is
expanding, and looks set to for the foreseeable future. If the UK wishes to capture
this market, it must nurture firms that are able to offer complete engineering
solutions, not just remanufacture. Many machines currently being remanufactured
in the UK are benefiting from the addition of CNC control. When these machines
reach the end of their second lifetime in 10 or 20 years, the UK needs to be
prepared to enhance them with the next generation of technology, and be at the
forefront of that technology.
6 Policy options
Fiscal measures – Include remanufactured machine tools in the
governments ECA scheme to encourage firms to use remanufactured
machines rather then purchase new lower value imports.
Product design – Stimulate academic and industrial research into
machining so that the UK will retain its current position as an innovative
force in the machining sector.
Market Development – Help smaller British machine tool firms expand
their market place to Europe and Asia by providing them with advice and
information on doing business with foreign companies, and the benefits
that it can bring to their operation.
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7 Model
Many firms interviewed stated that the number of orders they received varied
quite dramatically from year to year, particularly for larger machines. The vast
majority of firms are also relatively small, and thus there was no one firm or group
of firms that could be seen as dominating the industry as in other sectors such as
aerospace. The industry size has therefore been estimated from data collected
from interviews and data from the MTA. Approximately 450 machines are
remanufactured every year in the UK, with some of these being destined for
overseas customers. This equates to an industry turnover of £45 million,
although it should be noted that individual contracts can have multi million pound
costs, thus this turnover could be affected significantly by relatively few orders.
Further complicating the issue is the enormous range of machine tools that are
remanufactured. It is impossible to specify an “average” machine tool, with
machines weighing from under a tonne to over 100 tonnes. For this model, a
mass of 4 tonnes has been selected, which would represent a mid sized
machining centre.
Assumptions:
A total industry turnover of £45 million
A total output of 450 machines per annum
The cost of a remanufactured machine is £100,000
A machine mass of 4,000kg
The CO2E produced during the manufacture of a machine is 3.3kg CO 2E /
kg machine.
The CO2E that could be saved by recycling a typical machine is 2.1kg
CO2E / kg of machine.
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Table 1: Scenario assumptions
Scenario
Overall output and
assumptions
Possible policy
Interventions
Units
Saved
From
Waste
Stream
Ref
The
proportional
level
of
remanufacture
remains constant at
2006 levels, with a
decrease of 6% in
line
with
UK
machine stocks.
The
proportional
level
of
remanufacture
increases at a rate
of 0.2% pa in line
with predicted UK
machine
tool
production growth.
The
proportional
level
of
remanufacture
increases at a rate
of 2% pa which
represents
the
predicted growth of
the
European
machine
tool
industry.
None
A1
A2
CO2E
Saved
(kt)
£mil
Spent
On
Reman
Products
4713
Tonnes
diverted
From
Waste
Stream
(kt)
19
23
471
Encourage
remanufactures
to be proactive in
seeking Foreign
trade
7420
30
36
742
Same
as
A1
together
with
greater emphasis
on R&D
8388
34
40
839
Figure 1: Scenario outcomes
Remanufacture of Machine Tools
700
600
Number of Units
500
400
Ref
300
A1
A2
200
100
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Year
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2019
2020
2021
Scenario Ref
In this scenario, the UK has failed to capitalise on its knowledge and skill base.
Remanufacture is only used to supply UK based customers. As the UK steadily
reduces its stock of machine tools, so too does the work for remanufactures. By
2020, only 190 machine tools are remanufactured each year, a fall of 260
machines on 2006 figures. This represents 757 tonnes of material being diverted
from the waste stream and a CO2E saving of 854 tonnes each year, under half the
current figures.
Scenario A1
Here, the UK has managed to capture sufficient foreign trade for remanufacture
to grow steadily, despite a falling internal demand. The level of remanufacture
has grown steadily at the same rate as the production of new equipment. By
2020, 476 machines will be remanufactured each year, equating to 1903 tonnes
of material being diverted from the waster stream and a CO2E saving of 2284
tonnes. This is an improvement of 1430 tonnes CO2E over scenario Ref.
Scenario A2
In this scenario, the UK has succeeded in stimulating the growth of its machine
tool industry as a whole, and as a consequence has managed to equal the
growth seen in the rest of Europe. By 2020, 606 machines are being
remanufactured each year, which saves 2375 tonnes of material from landfill and
2850 tonnes of CO2E from being produced. This is an improvement of almost
2000 tonnes CO2E over scenario Ref.
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